What Is Bitcoin, and How Does It Work?

  • The records of the Bitcoin network, including all balances and transactions, are stored on every computer helping to maintain the network — about 9,500 computers in late 2017.
  • Bitcoin mining refers to the process through which new Bitcoins are created and given to computers helping to maintain the network.
  • The computers involved in Bitcoin mining are in a sort of computational race to process new transactions coming onto the network.
  • Anyone can set his or her computer to mine Bitcoin, but these days only people with specialized hardware manage to win the race.
  • While several people have been identified as likely candidates to be Satoshi, as the creator is known in the world of Bitcoin, no one has been confirmed as the real Satoshi, and the search has gone on.

Growing in importance but still not well understood, Bitcoin is a virtual currency with a novel background.
Continue reading “What Is Bitcoin, and How Does It Work?”

Now I Get It: Bitcoin [Video]

Now I Get It: #Bitcoin by @Pogue

  • This arrangement has some stunning advantages over traditional currency or credit cards:

    There’s a whole lot of really cool, really complicated math involved in Bitcoin, designed to keep it secure and to prevent Bitcoin inflation.

  • There’s no government to decide when to print new money in this case, so new bitcoins are “mined”—created—through a complex scheme you can read about here.
  • When you get a Bitcoin address—something like an email address—you also get a complex password known as a private key, which you need to access your stash.
  • At that point, you can transfer money to other people by sending it to their Bitcoin addresses.
  • Or if your Bitcoin exchange goes out of business, which has happened plenty; in fact, 18 of the first 40 exchanges had gone under as of 2013, taking all their clients’ money with them.

Man, if anything needs the “now I get it” treatment, it’s Bitcoin. You hear about it all the time in financial and technical circles—but most people really don’t grasp it.
Continue reading “Now I Get It: Bitcoin [Video]”

Now I Get It: Bitcoin [Video]

Now I Get It: #Bitcoin by @Pogue

  • This arrangement has some stunning advantages over traditional currency or credit cards:

    There’s a whole lot of really cool, really complicated math involved in Bitcoin, designed to keep it secure and to prevent Bitcoin inflation.

  • There’s no government to decide when to print new money in this case, so new bitcoins are “mined”—created—through a complex scheme you can read about here.
  • When you get a Bitcoin address—something like an email address—you also get a complex password known as a private key, which you need to access your stash.
  • At that point, you can transfer money to other people by sending it to their Bitcoin addresses.
  • Or if your Bitcoin exchange goes out of business, which has happened plenty; in fact, 18 of the first 40 exchanges had gone under as of 2013, taking all their clients’ money with them.

Man, if anything needs the “now I get it” treatment, it’s Bitcoin. You hear about it all the time in financial and technical circles—but most people really don’t grasp it.
Continue reading “Now I Get It: Bitcoin [Video]”

Now I Get It: Bitcoin [Video]

Now I Get It: Bitcoin by @Pogue

  • This arrangement has some stunning advantages over traditional currency or credit cards:

    There’s a whole lot of really cool, really complicated math involved in Bitcoin, designed to keep it secure and to prevent Bitcoin inflation.

  • There’s no government to decide when to print new money in this case, so new bitcoins are “mined”—created—through a complex scheme you can read about here.
  • When you get a Bitcoin address—something like an email address—you also get a complex password known as a private key, which you need to access your stash.
  • At that point, you can transfer money to other people by sending it to their Bitcoin addresses.
  • Or if your Bitcoin exchange goes out of business, which has happened plenty; in fact, 18 of the first 40 exchanges had gone under as of 2013, taking all their clients’ money with them.

Man, if anything needs the “now I get it” treatment, it’s Bitcoin. You hear about it all the time in financial and technical circles—but most people really don’t grasp it.
Continue reading “Now I Get It: Bitcoin [Video]”

Bitcoin soars as miners finally move to solve the digital currency’s scaling problem

  • Bitcoin miners are signaling their intent to support a new upgrade for the bitcoin blockchain that may solve the digital currency’s long-running scaling issue.
  • Several of the largest bitcoin miners (who create new bitcoins and support the blockchain), including AntPool, BitClub, Bixin, BTC.com and BitFury, have started showing their support for bitcoin improvement proposal (BIP) 91, by adding a piece of code to each new block of bitcoins they generate.
  • The miners were not expected to start coding their support for BIP 91 until July 21.
  • Already, 66 percent of the last 144 blocks created signal support for it.
  • The proposal needs 80 percent support to be “locked in” to the blockchain permanently.

Bitcoin miners are signalling their intent to support a new upgrade for the bitcoin blockchain that may solve the digital currency’s scaling issue.
Continue reading “Bitcoin soars as miners finally move to solve the digital currency’s scaling problem”

Bitcoin value tops gold for first time

Bitcoin value tops gold for first time - BBC News - @bbcnews -  - [#Cryptocurrency #Bitcoin]

  • Image copyright
    Reuters

    A unit of the digital cryptocurrency Bitcoin has exceeded the value of an ounce of gold for the first time.It closed at $1,268 on Thursday while a troy ounce of gold stood at $1,233.

  • The value of Bitcoin has been volatile since it was first launched in 2009, and many experts have questioned whether the crypto-currency will last.Earlier this year, Chinese authorities cracked down on Bitcoin trading in an attempt to stop money flowing out of the country illegally.But the closer scrutiny from Beijing only briefly sent the currency lower.
  • Yet like all currencies its value is determined by how much people are willing to exchange it for.To process Bitcoin transactions, a procedure called “mining” must take place, which involves a computer solving a difficult mathematical problem with a 64-digit solution.
  • Image copyright
    Eyewire

    Image caption

    Verifying bitcoin transactions takes a lot of computer power

    For each problem solved, one block of Bitcoins is processed.

  • In addition the miner is rewarded with new Bitcoins.To compensate for the growing power of computer chips, the difficulty of the puzzles is adjusted to ensure a steady stream of new Bitcoins are produced each day.

Demand for the digital cryptocurrency has soared since the beginning of the year.
Continue reading “Bitcoin value tops gold for first time”